Global Payments: Checkout Friction Costs Brands Customers

A poor checkout process causes 71% of British consumers to abandon bookings on digital platforms, according to research from Global Payments. The finding suggests that payment infrastructure now functions as a marketing differentiator for software-as-a-service (SaaS) providers competing for customer retention.

The ability to complete transactions without leaving a platform or being redirected to external payment pages has become a baseline expectation for users. According to the research, consumer spending through SaaS platforms and apps for personal services reaches an estimated £15bn (US$19.6bn) a year in the UK.

The wellness and fitness sectors have become the testing ground for this shift. The fitness industry in particular accounts for a large portion of digital bookings as consumers migrate away from phone calls and walk-ins toward mobile applications.

Younger demographics are leading this change in behaviour. Gen Z and Millennials together represent half of total UK spending on wellness and fitness applications, contributing around £7.5bn (US$9.8bn) annually, according to the data.

Younger audiences drive adoption

The research found that more than half of Gen Z users (55%) and half of Millennials (50%) report using booking platforms more than they did two years ago. The trend could mean that acquisition strategies focused on older demographics may miss the bulk of platform growth.

According to the data, 31% of UK adults now use platforms to book fitness services including individual classes and gym memberships. For SaaS providers, this creates both an opportunity and a technical requirement.

Grant Evans, Head of Sales, Integrated and Platforms at Global Payments, says customer experience at the payment stage determines platform success or failure. He says: "We are living in the app economy and fitness is one of its biggest winners – from padel to pilates. This presents a huge opportunity for platforms, but only if they have the right technology in place. Crucially, this must include payments, which are often the make-or-break moment in a transaction."

Grant adds that platforms need the right software partner to attract new business. He says: "Platforms must find the right software partner to deliver on this need if they are going to attract new business – it is how they can win the trust of businesses looking to grow and help their SMB clients turn first-time bookings into repeat business."

Discovery tools and local reach

Booking platforms are becoming discovery channels as well as transaction tools. According to the survey, 13% of consumers use these platforms to find and support independent businesses.

For small and medium-sized businesses (SMBs), listing on digital marketplaces provides access to customer bases that would otherwise require separate marketing spend. However, the data found that 36% of independent personal services businesses in the UK need their software to provide better payment management capabilities.

To demonstrate this shift, Global Payments worked with Sheli McCoy, coach and owner of SweatBox Dundee. Sheli says the software allows potential customers to find her business, book classes and pay online without friction.

She says: "Your vibe attracts your tribe and we've built a community based on that ethos, giving that opportunity to everybody who comes here. Success is knowing we can't do everything ourselves – it's about harnessing the talents of other people and bringing in technology to help us pull everything together."

Sheli adds that the platform improves customer experience while freeing up time for coaching. She says: "The software we use helps people find us, book their classes and pay online, making it a better experience for clients while allowing me to focus on spending time face-to-face, coaching and working with them on the ground."

Payment friction drives abandonment

The research highlights three metrics that could inform platform marketing and product strategies:

• 71% of consumers say a poor payment process would cause them to abandon a booking altogether
• 42% of users actively choose platforms based specifically on whether they offer simple, secure payments
• 84% of consumers expect a refund within 48 hours if a service, such as a fitness class, is cancelled.

According to the data, platforms that fail to deliver seamless checkouts risk losing not only individual transactions but also the SMB clients who depend on smooth user experiences to convert first-time bookings into repeat customers. For platform providers, payment functionality has shifted from a backend operational concern to a customer acquisition and retention tool.